On a SAR 240,000/year wage with 6 years' service, the full Article 84 award is SAR 70,000. Employer-initiated termination pays the full amount. Resign instead, and Article 85's 5-10 year tier cuts it to two-thirds, just SAR 46,667, a SAR 23,333 gap purely from how you leave.
Years 1-5
0.5 month/yr
half a month's wage
Year 6+
1 month/yr
rate steps up, no cap
Resignation, 5-10yr
2/3 award
Article 85 tier
Applies to
Nationals + expats
Labor Law, not GOSI
Full Article 84 award
SAR 70,000
Payable amount
SAR 70,000
Monthly take-home
SAR 20,000
Article 85 tier applied
Employer-initiated exit, full Article 84 award (Article 80 misconduct dismissals forfeit EOSB entirely and aren't modelled here)
100%
Figures are estimates based on Labor Law Article 84/85. Your actual entitlement depends on your exact contract terms, always confirm with HRSD guidance or your HR/payroll team before relying on this for a resignation or settlement negotiation.
Want the standalone GOSI contribution breakdown?
Open the GOSI CalculatorArticle 84 builds your EOSB from two accrual rates stacked in sequence: half a month's wage for each of your first 5 years, then a full month's wage for every year after that. The two rates don't blend retroactively, your first 5 years always accrue at the half-month rate, and only years beyond that pick up the doubled rate. Unlike the UAE's gratuity, there's no 2-year cap here, the full-month rate keeps accruing indefinitely, which is why long-tenured employees in Saudi Arabia can end up with meaningfully larger end-of-service payouts than an equivalent UAE tenure.
How you leave changes what you actually get, but only if you resign. Employer-initiated termination, redundancy, and a handful of other qualifying exits all pay the full Article 84 award regardless of tenure. Resignation is where Article 85's tiers kick in: nothing under 2 years, one-third from 2 to under 5 years, two-thirds from 5 to under 10 years, and the full award from 10 years onward. These are hard steps, not a sliding scale, so crossing a tier boundary by even a day matters more than crossing it by a year within the same tier.
EOSB and GOSI run on entirely separate tracks. GOSI is an ongoing payroll deduction that only applies to Saudi nationals, funding pension and unemployment insurance. EOSB applies identically to Saudi nationals and expatriates alike, it's a Labor Law entitlement based purely on wage and tenure, paid by the employer directly at exit, with nothing routed through GOSI at all.
Termination vs resignation under Article 84/85
| Line item | Termination | Resignation |
|---|---|---|
| Full Article 84 award | SAR 70,000 | SAR 70,000 |
| Payable fraction | 100% | 67% |
| Payable amount | SAR 70,000 | SAR 46,667 |
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Under Article 84 of the Saudi Labor Law, you accrue half a month's wage for each of your first 5 years of service, then a full month's wage for each year after that. Unlike the UAE's gratuity, there's no cap, the full-month rate keeps accruing indefinitely past year 5. It's based on your last wage (basic salary plus fixed allowances, typically housing), not your average wage over your tenure.
Yes, under Article 85, if you resign rather than being terminated or made redundant. Under 2 years of service, you get nothing. Between 2 and 5 years, you get one-third of the full Article 84 award. Between 5 and 10 years, two-thirds. At 10 years or more, you get the full award, the same as if your employer had ended the contract.
Yes. Article 84 and Article 85 apply equally to Saudi nationals and expatriate employees in the private sector, EOSB is a Labor Law entitlement, not tied to GOSI or nationality. GOSI, by contrast, only deducts from Saudi nationals' pay, that's a completely separate system running alongside EOSB, see our dedicated GOSI calculator for that figure.
Your last basic salary plus any fixed allowances that form part of your regular pay, most commonly your housing allowance. One-off bonuses, commission, and reimbursed expenses generally don't count. Always check your specific offer letter or contract, since allowance structures vary between employers in Riyadh, Jeddah, and Dammam.
Article 80 of the Labor Law lists specific grounds (serious misconduct, breach of trust, and similar) that let an employer terminate without notice and without paying end-of-service benefit at all. That's a narrow, specific set of circumstances, not the default outcome of any employer-initiated exit, and it isn't modelled in this calculator, which assumes a standard termination, redundancy, or resignation.
No. GOSI contributions and EOSB are entirely separate systems. GOSI is a payroll deduction for Saudi nationals that funds pension and unemployment insurance; EOSB is a lump sum your employer pays out of pocket when you leave, calculated purely from your wage and years of service. Neither one changes the other.
Article 85's tiers are fixed steps, not a sliding scale: 0% under 2 years, exactly one-third from 2 to under 5 years, exactly two-thirds from 5 to under 10 years, and the full award from 10 years onward. There's no proration within a tier, an employee at 5 years and 1 month gets the same two-thirds as one at 9 years and 11 months, the jump only happens when you cross a tier boundary.
Related Saudi Arabia tools and reading
EOSB is one piece of your total Saudi Arabia picture. These tools cover the rest.
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